BYD to sell Sealion SUV in Europe from 2025 in sign extra tariffs are ‘no big deal’

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Chinese EV makers are pushing sales in export markets amid stiff competition, sluggish economy at home

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China-built electric vehicles, including those by BYD, are seen parked in the port of Zeebrugge in Belgium in October 2024. Photo: Reuters

Daniel Renin Shanghai

Published: 6:20pm, 13 Nov 2024

BYD is looking to crank up more sales overseas by pushing its latest sport-utility vehicles (SUVs) into the European market, shrugging off recent tariff hikes on China-made electric vehicles (EVs).

The world’s largest EV assembler will start delivering the Sealion 07 to customers from 2025, making it the firm’s seventh pure-electric model to hit the European market, according to a statement on Wednesday. BYD is also planning to enter the South Korean market for the first time next year, adding to its presence in 95 countries.

The latest foray in Europe underpins its confidence in the industry outlook and cost advantage, even after the European Union voted last month to impose an additional tariff of 17 to 35.3 per cent on Chinese EVs following an anti-subsidy investigation. BYD’s cars are subject to a 17 per cent rate in the bloc.

The all-electric Sealion 07 is destined for the European market next year. Photo: Handout

The extra duties, which are on top of the standard 10 per cent tariff applied to pure-electric cars made in China, kicked in last month and will last for five years. The US has also raised tariffs on Chinese-made EVs to 100 per cent from 25 per cent from September for the same reason.

“BYD’s vehicles remain attractive even after the additional tariffs, so it’s really no big deal for the company,” said Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, an industry consultancy. “The Sealion 07 is the latest example of how its cost advantage can help dilute the impact” of such hurdles in export markets, he added.

Shenzhen-based BYD has yet to unveil the price for Sealion 07 in Europe. The SUV, which offers a driving range of 450km, starts at 189,800 yuan (US$26,272) on the mainland, with deliveries to customers beginning in May.

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In a teardown report last year, UBS analysts said BYD had a sustainable 25 per cent cost advantage over traditional EU brands.